According to the latest agreement, between 2019 and 2021 Volvo will sell Uber a massive fleet of XC90 SUVs readily available to be equipped with Uber's self-driving system that is now in development.

Volvo Cars Chief Executive Hakan Samuelsson said, "We believe this is a new segment, a new business".

"Our aim is to be the supplier of choice for AD ride-sharing service providers globally". Previously, we've seen Uber test its self-driving Volvo XC90 SUVs in Pittsburgh, and the company has already established a strong and strategic partnership with Volvo since August 2016.

The XC90 SUVs are to be "base" vehicles, which incorporate a degree of autonomous capability but which are created to have Uber's proprietary driverless tech added on top.

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"This new agreement puts us on a path towards mass-produced self-driving vehicles at scale".

That includes Uber, which Monday announced a new deal with Volvo. Police said the incident was caused by a human driver of another vehicle not the Uber self-driving auto.

This latest news follows a 2016 agreement between the two companies, which saw Uber adding its own self-driving systems to a Volvo base auto. Although those cars are self-driving, they still have an engineer present behind the wheel, ready to take control. Uber already uses Volvo's XC90 as the testbed for its self-driving system, which is now undergoing trials in Arizona and Pittsburgh.

Although, Uber and Volvo have entered into an agreement, there is still no time period set when Uber will launch its driverless ride hailing service.

From automakers like Ford, Tesla and General Motors to technology companies like Google, Uber and Lyft, titans of the transportation industry are racing to gain an edge in a future of autonomous vehicles.

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